Movement in the Forex market is determined by fundamental factors. These are the key macroeconomic indicators of the state of the national economy that affect the participants in the Forex currency market and the level of exchange rates. It is these factors that are studied by fundamental analysis.
Information about discount rates of central banks, the economic course of the government, possible changes in the political life of the country, as well as all sorts of rumors and expectations are they.
One of the most important components of the success of a currency trader is the ability to analyze market changes and predict which factors and how will affect the exchange rate. Fundamental analysis establishes the relationship of exchange rates with the economic situation and the competitive position of trading countries, explains the goals and instruments of the financial policy of central banks, shows the relationship between various financial markets, the reasons for their ups and downs.
Conducting fundamental analysis is much more difficult than any other, since the same factors have an unequal impact on the market under different conditions.
The main group of participants in the FOREX international currency market is commercial banks. It is they who conduct the bulk of foreign exchange transactions at their own expense and on behalf of clients. Other participants in the foreign exchange market keep their accounts in commercial banks and send them applications for the purchase and sale of currency for their own needs, as well as loans or vice versa, keep their deposits in banks. (deposit and credit operations).Banks, being specialized organizations, accumulate market needs (supply and demand) through transactions with customers and, if they are not able to satisfy these needs themselves, they satisfy them through other banks. Therefore, FOREX, in fact, is not an exchange. In a strict sense, this is a market for interbank transactions. Commercial banks also carry out speculative operations at their own expense.
05 - 09 September |
weekly
forecast 05 - 09
September | ||
2022 | EURUSD | GBPUSD | USDJPY |
09 September | EURUSD trading plan: Germany's two-year government bond yield jumped to its highest since 2011 on Thursday, after the European Central Bank delivered an unprecedented 75 basis points interest rate hike and took steps to prevent a further squeeze in bonds. That followed a decision by the central ban | GBPUSD trading plan: The number of Americans filing new claims for unemployment benefits fell last week to a three-month low, underscoring the robustness of the labor market even as the Federal Reserve raises interest rates. The Federal Reserve has raised interest rates by 225 basis points since Ma | USDJPY trading plan: The Federal Reserve is "strongly committed" to fighting inflation and remains hopeful that can be done without the "very high social costs" involved in prior campaigns to control surging prices, Fed Chair Jerome Powell said, in remarks that were echoed by ot |
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